Preprinted  from 
The  American  Journal  of  Sociology,  Vol.  XX,  No.  6,  May,  1915 


CHICAGO  MET  THE  UNEMPLOYMENT 
PROBLEM  OF  19151 


C.  R.  HENDERSON 
Chairman  of  the  Chicago  Industrial  Commission 


On  January  22,  191 2,  His  Honor  Carter  H.  Harrison,  mayor  of 
Chicago,  at  the  suggestion  of  the  chairman  of  the  Executive  Com- 
mittee of  the  United  Charities,  sent  a  communication  to  the  City 
Council  of  Chicago  requesting  it  to  authorize  a  commission  to  study 
and  report  on  the  whole  subject  of  unemployment  and  to  make  such 
recommendations  as  might  suggest  themselves  for  the  amelioration 
of  existing  conditions. 

The  City  Council  acted  on  the  request  of  the  Mayor  and  author- 
ized and  directed  the  Mayor  to  appoint  a  committee  consisting  of 
five  members  of  the  City  Council,  and  ten  other  citizens  of 
Chicago,  to  make  necessary  investigation  and  report  recommenda- 
tions. 

The  commission  held  its  first  meeting  February  24,  191 2,  and 
at  once  undertook  the  investigation  of  seven  subjects:  the  nature 
and  extent  of  unemployment,  employment  bureaus,  immigration, 
vocational  guidance,  adjustment  of  employment,  emergency  relief, 
and  the  repression  of  vagabondage. 

Each  of  the  subcommittees,  with  the  help  of  specialists,  studied 
a  particular  phase  of  the  problem  and  reported  back  to  the  Com- 
mission on  Unemployment. 

On  May  25,  191 2,  the  commission  unanimously  recommended 
a  law  for  the  reorganization  of  the  free  state  employment  bureaus. 
This  law  was  afterward  approved  by  the  Judiciary  Committee  of 
the  City  Council  of  Chicago  and  recommended  to  the  legislature. 

In  the  autumn  of  1914,  the  City  Council  established  another 
commission,  called  the  City  Markets  Commission.  It  made 
another  investigation  of  the  situation  at  that  time  and  came  to 

1  This  summary  was  dictated  by  the  author  after  the  beginning  of  the  illness 
which  proved  fatal. — A.  W.  S. 


2  TEE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

practically  the  same  conclusions  as  those  reached  by  the  previous 
Commission  on  Unemployment.  It  recommended  further  that  the 
City  Council  establish  still  another  commission,  whose  function  it 
would  be  to  advise  the  Mayor  and  City  Council  in  regard  to  further 
measures,  and  especially  to  do  what  was  possible  to  meet  the  present 
crisis  by  stimulating  private  employers  to  employ  as  many  men  as 
possible,  either  by  introducing  the  part-time  system  or  by  antici- 
pating the  work  which  would  be  required  later  in  the  ordinary 
process  of  business. 

The  Industrial  Commission  during  the  winter  of  1 914-15,  in 
co-operation  with  the  existing  free  state  employment  bureaus  and 
the  Department  of  Public  Welfare  in  the  Chicago  municipal 
government,  has  been  able  by  vigorous  canvassing  to  secure  tem- 
porary or  permanent  work  for  a  considerable  number  of  the 
unemployed.  The  co-operation  was  friendly  and  helpful,  although 
it  revealed  some  defects  in  existing  machinery  of  the  employment 
agencies. 

It  was  suggested  to  this  Industrial  Commission  that  it  follow 
the  traditional  method  used  in  this  city  in  1893-94  and  at  subse- 
quent periods  of  stagnation  in  business.  At  first  the  Industrial 
Commission  accepted  this  task,  but  as  soon  as  it  consulted  leading 
business  men  of  the  city  in  regard  to  the  policy  of  raising  $500,000.00 
to  mitigate  the  suffering  for  a  few  weeks  until  the  general  industries 
should  revive,  it  found  practically  universal  antagonism  to  the  plan. 
When  it  asked  for  contributions  to  this  large  sum  of  money,  it  was 
met  by  this  answer:  " Emergency  relief  work  is  to  all  intents  and 
purposes  simply  passing  the  hat  for  a  charity  collection,  and  the 
public  and  private  charities  in  Cook  County  are  so  well  organized, 
that  they  can  meet  all  charity  cases  and  prevent  extreme  suffering." 
And  this  claim  was  founded  on  fact.  The  United  Charities,  co- 
operating with  about  seventy-five  other  agencies,  has  shown  that 
the  labor  of  over  twenty  years  in  building  up  a  good  organization 
and  central  registration  of  cases  has  proved  the  wisdom  of  keeping 
up  a  thorough  district  organization  with  a  trained  staff.  The 
public  has  supported  the  regular  organized  charities,  so  that  we  are 
prepared  to  show  that  no  family  need  to  be  evicted  from  its  dwelling 
or  suffer  from  hunger  and  cold  on  account  of  inadequate  funds  or 


Gu  &  1  e>  * 


HOW  CHICAGO  MET  THE  UNEMPLOYMENT  PROBLEM 


imperfect  organization.  Therefore,  it  was  wasteful  to  build  up  still 
another  charitable  organization  dependent  upon  the  gifts  of  exactly 
the  same  people  who  were  supporting  the  regular  charities. 

Furthermore,  the  United  Charities  and  some  of  the  other  prin- 
cipal agencies  had  already  been  carrying  out  their  policy  of  giving 
relief  wages  in  return  for  useful  work  performed,  so  far  as  possible, 
and  it  was  not  good  policy  to  charge  charity  funds  with  the  expense 
of  duplicating  this  plant  and  machinery  by  adding  still  another 
emergency  relief  work. 

Furthermore,  these  leading  business  men  of  the  city  said  that 
the  task  was  too  great  for  private  charity  and  that  the  responsibility 
rests  with  the  city,  state,  and  federal  governments,  and  that  no 
other  organization  could  venture  to  assume  the  responsibility  of 
providing  work  for  the  vast  numbers  of  persons  who  were  involun- 
tarily out  of  work. 

The  trades  unions  and  Socialists  held  meetings  at  the  highest 
r^mnt  of  stress  and  Dro tested  against  the  emergency  relief  fund  and 

leading  business  men,  when  told  of 
d  at  least  for  once  in  his  life  to  agree 
tie  Socialists,  and  thought  their  view 
ubject. 

i  asked  the  Mayor  to  appoint  one 
iting  all  of  the  great  interests  of  the 
n  for  conference  and  to  give  their 
voice  the  members  of  this  conference 
,  and  said  that  the  emergency  relief 
s  way  of  undertaking  the  task, 
nee,  the  Industrial  Commission  sent 
and  to  the  City  Council  urging  them 
l  if  possible  from  the  state  General 
ring  up  the  free  state  employment 
iard  as  the  starting-point  of  the  new 

I  be  passed  which  would  place  this 
>f  appointment  and  promotion;  free 
ecify  the  qualifications  of  the  execu- 
jmployee  from  the  spoilsman. 


LAWRENCE  J.  GUTTER 

Collection  of  Chicogoono 

THE   UNIVERSITY   OF   ILLINOIS 
AT  CHICAGO 


The  University  Library 


2  TEE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

practically  the  same  conclusions  as  those  reached  by  the  previous 
Commission  on  Unemployment.  It  recommended  further  that  the 
City  Council  establish  still  another  commission,  whose  function  it 
would  be  to  advise  the  Mayor  and  City  Council  in  regard  to  further 
measures,  and  especially  to  do  what  was  possible  to  meet  the  present 
crisis  by  stimulating  private  employers  to  employ  as  many  men  as 
possible,  either  by  introducing  the  part-time  system  or  by  antici- 
pating the  work  which  would  be  required  later  in  the  ordinary 
process  of  business. 

The  Industrial  Commission  during  the  winter  of  1 914-15,  in 
co-operation  with  the  existing  free  state  employment  bureaus  and 
the  Department  of  Public  Welfare  in  the  Chicago  municipal 
government,  has  been  able  by  vigorous  canvassing  to  secure  tem- 
porary or  permanent  work  for  a  considerable  number  of  the 
unemployed.  The  co-operation  was  friendly  and  helpful,  although 
it  revealed  some  defects  in  existing  machinery  of  the  employment 
agencies. 

It  was  suggested  to  this  Industrial  Commission  that  it  follow 
the  traditional  method  used  in  this 
quent  periods  of  stagnation  in  bus- 
Commission  accepted  this  task,  but 
business  men  of  the  city  in  regard  to  t 
to  mitigate  the  suffering  for  a  few  we 
should  revive,  it  found  practically  un 
When  it  asked  for  contributions  to  t 
met  by  this  answer:  " Emergency  r< 
purposes  simply  passing  the  hat  foi 
public  and  private  charities  in  Cook 
that  they  can  meet  all  charity  cases  a 
And  this  claim  was  founded  on  fac 
operating  with  about  seventy-five  0 
the  labor  of  over  twenty  years  in  bi 
and  central  registration  of  cases  has 
up  a  thorough  district  organizatio 
public  has  supported  the  regular  org; 
prepared  to  show  that  no  family  need 
or  suffer  from  hunger  and  cold  on  a 


Gu  Q>  1 5  & 


HOW  CHICAGO  MET  THE  UNEMPLOYMENT  PROBLEM       3 

imperfect  organization.  Therefore,  it  was  wasteful  to  build  up  still 
another  charitable  organization  dependent  upon  the  gifts  of  exactly 
the  same  people  who  were  supporting  the  regular  charities. 

Furthermore,  the  United  Charities  and  some  of  the  other  prin- 
cipal agencies  had  already  been  carrying  out  their  policy  of  giving 
relief  wages  in  return  for  useful  work  performed,  so  far  as  possible, 
and  it  was  not  good  policy  to  charge  charity  funds  with  the  expense 
of  duplicating  this  plant  and  machinery  by  adding  still  another 
emergency  relief  work. 

Furthermore,  these  leading  business  men  of  the  city  said  that 
the  task  was  too  great  for  private  charity  and  that  the  responsibility 
rests  with  the  city,  state,  and  federal  governments,  and  that  no 
other  organization  could  venture  to  assume  the  responsibility  of 
providing  work  for  the  vast  numbers  of  persons  who  were  involun- 
tarily out  of  work. 

The  trades  unions  and  Socialists  held  meetings  at  the  highest 
point  of  stress  and  protested  against  the  emergency  relief  fund  and 
all  that  it  implied.  One  of  the  leading  business  men,  when  told  of 
this  action,  said  that  he  was  glad  at  least  for  once  in  his  life  to  agree 
with  organized  labor  and  with  the  Socialists,  and  thought  their  view 
was  thoroughly  sound  on  this  subject. 

The  Industrial  Commission  asked  the  Mayor  to  appoint  one 
hundred  other  citizens,  representing  all  of  the  great  interests  of  the 
community,  to  meet  with  them  for  conference  and  to  give  their 
opinion.  Without  a  dissenting  voice  the  members  of  this  conference 
expressed  the  same  convictions,  and  said  that  the  emergency  relief 
method  was  not  a  really  serious  way  of  undertaking  the  task. 

After  this  study  and  conference,  the  Industrial  Commission  sent 
a  communication  to  the  Mayor  and  to  the  City  Council  urging  them 
first  of  all  to  secure  legislation  if  possible  from  the  state  General 
Assembly  then  in  session,  to  bring  up  the  free  state  employment 
bureaus  to  a  good  modern  standard  as  the  starting-point  of  the  new 
system. 

It  urged  that  a  law  should  be  passed  which  would  place  this 
work  under  the  merit  system  of  appointment  and  promotion;  free 
it  from  partisan  influences;  specify  the  qualifications  of  the  execu- 
tive officers;  and  protect  the  employee  from  the  spoilsman. 


4  THE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

It  urged  that  sufficient  means  should  be  provided  for  carrying 
out  in  a  thorough  way  the  purposes  of  the  offices,  and  that  the 
board  of  managers  representing  the  interests  of  business  and  labor 
should  have  charge  of  the  whole  matter. 

The  Industrial  Commission  also  recommended  that  this  board 
of  managers  in  charge  of  the  state  employment  exchanges  should 
be  required  by  law  to  make  all  possible  efforts  to  persuade  the  great 
employers  of  labor,  including  corporations,  county,  city,  and  state 
government  and  the  federal  government,  to  adjust  their  contracts 
and  schemes  of  public  work  so  as  to  avoid  unemployment  in  the 
future,  as  far  as  possible. 

This  idea  of  course  was  not  new,  but  the  creation  of  an  organ 
for  making  it  effective  seems  to  be  somewhat  novel.  It  would  make 
it  the  definite  duty  of  a  public  body  to  make  an  honest  attempt  to 
provide  employment  on  a  very  large  scale,  not  merely  to  mitigate 
suffering,  but  actually  to  prevent  unemployment. 

All  of  the  commissions  mentioned  above  came  to  the  conclusion 
that  unemployment  insurance  ought  to  be  introduced  at  the  earliest 
possible  moment,  so  that  when  the  next  great  crisis  comes  in  the 
life  of  the  unemployed  and  their  families,  a  fund  would  be  available 
to  meet  the  more  urgent  demands  of  existence.  This  business  also, 
it  was  suggested,  should  be  placed  in  the  hands  of  the  same 
board  which  manages  the  free  state  labor  exchanges. 

One  of  the  most  interesting  and  instructive  lessons  of  this  bitter 
winter  has  been  that  the  so-called  " hard-headed"  business  men,  the 
trades  unions,  the  Socialists,  and  the  academic  theorists  in  the  field 
of  social  legislation  in  this  great  industrial  state  and  city  have  by 
various  routes  met  in  agreement  under  the  pressure  of  necessity. 

The  disappointment  which  has  followed  all  previous  plans  of 
dealing  with  the  great  problem  by  " passing  the  hat"  has  made  a 
strong  impression  upon  men  of  affairs.  It  is  not  good  business.  It 
is  not  a  fair  method  of  distributing  the  burden.  It  makes  no  pro- 
vision whatever  for  preventing  unemployment.  It  offers  no  way 
out  of  the  difficulty  which  comes  from  lack  of  vocational  training 
and  guidance,  and  it  leaves  the  great  community  with  its  millions 
of  industrious  people  without  any  fund,  except  the  charity  fund,  in 
times  of  regularly  recurring  industrial  disaster. 


HOW  CHICAGO  MET  THE  UNEMPLOYMENT  PROBLEM       5 

This  view  of  the  vastness  and  difficulty  of  the  problem  was  con- 
firmed by  the  Mayor,  who  in  explaining  his  rejection  of  dne  request 
of  the  commission  (that  for  increase  of  public  municipal  works), 
said  that  the  city  itself  did  not  have  money  enough  to  give  employ- 
ment to  the  throng  of  the  unemployed;  that  it  was  too  poor  to 
keep  people  from  starving  by  giving  them  work  and  paying  them 
out  of  the  public  funds. 

No  more  striking  confirmation  of  the  conclusions  of  the  Indus- 
trial Commission  could  have  been  made.  This  commission  has 
honestly  declared  its  belief  that  the  problem  is  too  great  for  private 
charity.  The  Mayor  now  declares  that  it  is  too  great  for  the  re- 
sources of  the  second  city  of  wealth  and  power  of  the  richest  coun- 
try on  earth — and  in  time  of  peace  with  us. 

Evidently  the  next  resource  must  be  the  state.  But  already 
instructed  public  opinion  accepts  the  view  that  not  even  the  com- 
monwealth is  competent  to  cope  with  the  miseries  caused  by  inter- 
state and  even  international  conditions  of  trade,  transportation,  and 
commerce.  It  seems  reasonable  to  hope  that  this  intense  suffering 
has  at  last  aroused  the  business  world  to  a  serious  effort  to  grapple 
with  the  evil  in  some  thorough  and  earnest  fashion. 

The  conclusions  of  the  Industrial  Commission  were  reached  by 
prolonged  and  honest  effort  of  the  members  to  look  straight  at  the 
facts;  to  do  all  they  could  to  mitigate  immediate  distress,  and  at 
the  same  time  to  evolve  plans  large  enough  in  their  scope  to  corre- 
spond with  the  immensity  of  the  task. 

Primarily  the  calculations  which  led  to  this  conclusion  were 
those  of  business  men  who  are  in  the  habit  of  undertaking  tasks 
only  when  they  know  that  they  can  command  enough  capital  to 
make  the  enterprise  successful.  But  it  was  also  seen  that  these 
men  were  moved,  not  only  by  an  economic  motive,  but  also  and 
strongly  by  a  humanitarian  sentiment,  and  by  a  profound  and  sin- 
cere consciousness  of  the  social  obligations  of  men  of  financial  power. 

The  trades-union  members  of  the  commission  were  treated  with 
perfect  courtesy  by  the  captains  of  finance  in  the  same  body,  and 
the  relations  were  friendly  and  frank  throughout.  Why  should  not 
this  temporary  experiment,  in  time  of  a  crisis,  lead  to  the  organiza- 
tion of  a  permanent  public  body  in  which  the  situation  will  always 


6  THE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

be  discussed  in  the  same  spirit  of  patriotism,  business  wisdom,  and 
moral  earnestness? 

The  lesson  has  cost  more  than  can  be  set  down  in  figures,  but  it 
may  after  all  offer  compensation  in  a  more  thorough  and  complete 
social  organization  for  dealing  with  that  national  pest,  which  corre- 
sponds in  our  day  to  the  famine  and  black  plagues  of  mediaeval 
times. 

MEMBERS  OF  INDUSTRIAL  COMMISSION 

Charles  R.  Henderson,  Chairman 

John  E.  Merrion 

R.  T.  Crane,  Jr. 

W.  L.  Park 

Edward  Tilden  (deceased) 

Julius  Rosenwald 

A.  H.  Atwood 

John  Grunau 

Edward  Nockels 

Simon  O'Donnell 

Louis  B.  Kuppenheimer 

REPORT  ON  FUND  PLAN 

The  Industrial  Commission's  report  to  the  Mayor  reads  as  follows: 

"The  Industrial  Commission  appointed  by  you  has  endeavored  earnestly 
to  carry  out  the  purpose  named  in  the  ordinance  creating  the  commission ;  that 
is,  to  stimulate  employment  of  the  unemployed  by  private  citizens. 

"We  shall  continue  to  work  faithfully  in  this  direction. 

"We  have  used  all  available  means  of  setting  the  facts  before  manufac- 
turers, merchants,  and  householders.  The  response  has  been  courteous  and 
serious,  but  has  not  met  the  situation,  and  there  is  no  immediate  prospect  of 
sufficient  relief  in  that  direction. 

"While  no  complete  statistics  of  unemployment  exist,  the  reports  of  the 
Commission  on  Unemployment  and  of  the  Municipal  Markets  Commission, 
and  the  records  of  the  public  and  private  relief  agencies  reveal  a  widespread 
distress. 

"Families  which  have  no  previous  record  of  distress  in  great  numbers  are 
making  appeals  for  charity.  School  physicians  and  inspectors  report  numer- 
ous cases  of  children  unable  to  study  because  they  are  weak  from  hunger. 

"We  recognize  the  gravity  and  peril  of  the  situation  and  the  serious  duty 
of  the  community. 

"We  had  thought  of  asking  the  public  to  provide  a  large  fund  from  private 
subscriptions  that  we  might  give  some  relief  work  and  pay  something  in  wages 
for  labor  in  improving  parks  and  cleaning  streets. 


HOW  CHICAGO  MET  THE  UNEMPLOYMENT  PROBLEM       7 

"This  emergency  relief  work  with  charitable  funds  is  at  best  a  sorry 
makeshift;  it  is  a  serious  question  whether  it  is  a  wise  method.  Generally 
it  is  wasteful.    Often  the  results  are  disappointing. 

"From  our  inquiries  we  have  satisfied  ourselves  that  the  business  com- 
munity does  not  approve  this  plan  and  will  not  support  it.  This  is  also  the 
advice  of  the  committee  appointed  by  Your  Honor  to  confer  with  us  on  the 
subject. 

"It  is  therefore  the  conviction  of  the  Industrial  Commission  that  the  task  is 
too  great  for  a  private  committee  which  has  no  resources  but  those  obtained 
by  persuasion. 

"We  recommend  to  the  city  government  the  following  policy: 

"To  enlarge  municipal  public  works  under  a  wise  plan  which  will  create 
permanent  utilities  for  all  the  people — for  example,  improvement  of  parks, 
streets,  roads,  subways,  etc. 

"As  soon  as  possible  land  owned  by  the  city,  county,  and  sanitary  district 
could  be  used  for  growing  food.  Many  persons  could  thus  find  profitable 
occupation  and  many  a  suitable  trade.  We  are  informed  that  plenty  of  good 
land  in  or  near  the  city  can  be  had  without  expense,  and  this  could  be  put 
to  use,  some  of  it  at  once. 

"We  ask  the  mayor  and  council  to  unite  with  us  in  petitioning  the  legis- 
lature to  assume  its  share  of  responsibility  and  provide  immediately  for  useful 
public  work  on  a  large  scale. 

"To  prevent  at  least  in  great  measure  a  future  recurrence  of  these  periods 
of  distress  we  call  upon  the  city,  county,  state,  and  federal  authorities  to  co- 
operate with  the  business  world  in  a  system  of  arranging  plans  and  contracts 
for  public  work  which  will  call  for  increased  labor  demand  at  seasons  and  in 
periods  when  regular  business  is  depressed. 

"We  also  call  for  systems  of  unemployment  insurance  by  state  or  nation. 

"We  urge  a  better  equipment  of  the  state  free  employment  offices  on  the 
plan  recommended  by  the  Chicago  Commission  on  Unemployment,  described 
in  the  bill  for  a  law  approved  by  that  commission.  This  is  urgent  and  is  now 
before  the  City  Council.  This  should  form  a  part  of  a  national  system  of 
employment  exchanges." 

THE  COMMISSION'S  BILL 

A  Bill  for  an  Act  to  Relieve  Unemployment  in  the  State  of  Illinois,  and  to  Establish 
a  Free  State  Employment  Exchange  and  to  Repeal  an  Act  Relating  to  Employ- 
ment Offices  and  Agencies. 

Section  i.  Be  it  enacted  by  the  People  of  the  State  of  Illinois,  represented 
in  the  General  Assembly:  That  there  shall  be,  as  part  of  the  Civil  Service  of  the 
State  of  Illinois,  a  bureau  to  deal  with  the  problem  of  diminishing  the  evils 
arising  from  lack  of  employment  or  casual  or  irregular  employment  of  labor, 
to  be  known  as  the  Illinois  Free  Employment  Exchange. 


8  THE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

Sec.  2.  Said  Free  Employment  Exchange  shall  be  under  the  general 
supervision  and  control  of  a  Board  of  Managers,  to  consist  of  five  members, 
to  be  appointed  by  the  Governor,  by  and  with  the  advice  and  consent  of  the 
Senate,  of  whom  two  shall  be  representatives  of  employers,  two  representatives 
of  organized  labor,  and  one  shall  represent  the  public.  Said  members  shall  hold 
their  offices  for  a  term  of  five  years,  except  that,  of  the  members  first  appointed, 
one  shall  hold  office  for  the  term  of  one  year,  one  for  the  term  of  two  years,  one 
for  the  term  of  three  years,  one  for  the  term  of  four  years,  one  for  the  term  of 
five  years,  and  all  appointments  thereafter  shall  be  made  for  terms  of  five  years. 
Said  members  of  the  Board  of  Managers  shall  serve  without  compensation, 
but  each  shall  be  allowed,  for  actual  traveling  expenses  and  other  necessary 
expenses  incident  to  their  duties,  not  to  exceed  two  hundred  dollars  per  year, 
itemized  accounts  for  which  shall  be  submitted  to  and  approved  by  the  Auditor 
of  Public  Accounts  before  payment.  Said  Board  of  Managers  may  adopt  a 
seal  for  said  Exchange  and  may  also  adopt  rules  for  the  transaction  of  its  busi- 
ness. A  majority  of  their  number  shall  constitute  a  quorum  for  the  transac- 
tion of  official  business.  They  shall  keep  a  record  of  their  proceedings.  The 
official  seat  of  said  Exchange  shall  be  in  the  City  of  Chicago  but  they  shall 
have  authority  to  meet  elsewhere  in  the  State. 

Sec.  3.  Said  Board  of  Managers  shall  appoint  a  general  superintendent, 
who  shall  be  selected  and  hold  office  in  accordance  with  the  Civil  Service  Law 
of  this  State,  and  who  shall  receive  an  annual  salary  of  $4,000.00.  Such 
general  superintendent  shall  be  a  person  of  managerial  ability  and  experience 
as  an  administrator  and  shall  have  a  practical  and  scientific  knowledge  of  the 
problem  of  unemployment,  and  the  Civil  Service  examination  by  which  he 
shall  be  selected  to  the  said  position  shall  be  open  to  every  citizen  of  the  United 
States  and  shall  include  an  inquiry  into  his  ability  and  experience  in  such  mat- 
ters and  shall  be  such  as  to  test  whether  the  applicant  has  the  said  qualifications. 
Said  superintendent  shall,  subject  to  said  Board  of  Managers,  have  the  general 
executive  direction  of  the  said  Exchange.   He  shall  reside  in  the  City  of  Chicago. 

Sec.  4.  Said  Board  of  Managers  shall  establish  a  central  free  employment 
exchange  in  the  City  of  Chicago,  and  such  number  of  branches  in  the  City  of 
Chicago  and  in  other  cities  or  localities  of  the  State  as  they  may  from  time  to 
time  determine  to  be  advisable  and  as  the  Governor  may  approve.  Subject 
to  like  approval,  they  shall  have  power  to  reduce  the  number  of  said  branch 
or  local  offices,  or  to  consolidate  several  offices  into  one,  and  for  that  purpose 
to  make  the  necessary  official  changes.  Each  branch  office  shall  be  in  charge 
of  a  business  manager  who  shall  be  responsible  and  subject  to  the  direction  of 
the  general  superintendent.  He  shall  be  appointed  by  said  Board  of  Managers 
and  selected  and  hold  office  in  accordance  with  the  Civil  Service  Law  of  the 

State,  and  receive  a  salary  not  to  exceed  $ .    The  clerical  organization 

and  office  equipment  of  said  central  exchange  and  branch  offices  shall  be  deter- 
mined by  said  Board  of  Managers  in  co-operation  with  said  general  superin- 


HOW  CHICAGO  MET  THE  UNEMPLOYMENT  PROBLEM       g 

tendent  within  the  limits  of  the  amounts  appropriated  for  said  service  by  the 
General  Assembly.  As  far  as  practicable,  separate  rooms  shall  be  provided 
in  each  office  for  male  and  for  female  or  juvenile  applicants  for  employment, 
and  where  there  are  several  clerical  employes  in  any  office  it  shall  be  the  policy 
of  the  exchange  that  at  least  one  of  said  employes  shall  be  a  woman. 

Sec.  5.  Subject  to  said  Board  of  Managers  the  general  superintendent 
shall  organize,  in  connection  with  each  branch  of  said  exchange,  an  advisory 
board  of  not  more  than  five  members,  of  whom  one  shall  represent  the  general 
public  and  the  others  in  equal  numbers  shall  represent  employers  and  organized 
labor.  The  members  of  said  advisory  board  shall  serve  without  compensation, 
and  the  functions  of  such  advisory  boards  shall  be  determined  by  rules  of  said 
Board  of  Managers. 

Sec.  6.  It  shall  be  the  duty  of  the  Illinois  Free  Employment  Exchange 
to  investigate  the  extent  and  causes  of  unemployment  and  the  remedies  there- 
for and  to  devise  and  adopt  the  most  effectual  means  within  its  power  to  pro- 
vide employment  and  to  prevent  distress  and  involuntary  idleness,  and  for 
that  purpose  it  shall  have  power  to  co-operate  with  similar  bureaus  and  com- 
missions of  other  States,  with  the  federal  employment  office  in  the  Department 
of  Labor  and  with  such  municipal  employment  bureaus  and  exchanges  as  are 
now  in  operation  or  may  hereafter  be  created. 

Sec.  7.  The  Free  Employment  Exchange,  through  its  central  and  branch 
offices,  shall  receive  applications  of  persons  seeking  employment  and  applica- 
tions of  persons  seeking  to  employ  labor,  and  collect  information  and  data 
regarding  conditions  of  labor  and  employment  in  the  State.  Full  records  shall 
be  kept  of  all  applications  received  and  positions  secured.  Provision  may  be 
made  for  handling  separately  the  securing  of  employment  for  young  persons, 
for  persons  unable  to  support  themselves  permanently  in  adequate  manner, 
for  ex-convicts  and  paroled  prisoners,  for  unorganized  migratory  labor,  and 
for  such  other  classes  of  labor  as  may  require  special  treatment.  In  connection 
with  any  of  such  classes  of  labor  provision  may  be  made  for  the  keeping  of 
special  registers  showing  particulars  regarding  the  age,  nativity,  trade  or  occu- 
pation of  each  applicant,  cause  and  duration  of  non-employment,  whether 
married  or  single,  the  number  of  dependent  children  or  relatives,  together  with 
such  other  facts  as  may  be  required  by  said  Board  of  Managers.  Such  special 
registers  shall  not  be  open  to  public  inspection,  but  shall  be  held  in  confidence 
and  the  data  shall  be  so  published  as  not  to  reveal  the  identity  of  any  person. 
Arrangements  may  be  made  with  public  and  parochial  school  authorities  under 
which  juvenile  applicants  may  be  permitted  to  register  their  applications  at 
the  schools  which  they  respectively  attend,  the  registers  of  such  applications 
to  be  transmitted  to  the  Central  Free  Employment  Exchange,  and  the  said 
exchange  shall  otherwise  co-operate  with  educational  authorities  in  furthering 
the  vocational  interests  of  pupils  and  may  organize  special  advisory  boards 
for  that  purpose. 


V 


i 


Vc 
BKftM 


10  THE  AMERICAN  JOURNAL  OF  SOCIOLOGY 

Sec.  S.  All  local  or  branch  offices  shall  be  in  constant  communication  with 
said  central  exchange  and  shall  co-operate  with  each  other  as  directed  by  said 
central  exchange.  Reports  shall  be  made  to  such  central  exchange  as  directed 
by  the  general  superintendent.  It  shall  be  the  duty  of  the  general  superinten- 
dent to  place  himself  in  communication  with  manufacturers,  merchants,  and 
other  employers  of  labor  and  to  use  all  diligence  in  securing  the  co-operation  of 
said  employers  of  labor  with  the  purposes  and  objects  of  said  employment 
exchange.  To  this  end  it  shall  be  competent  for  such  superintendent  to  adver- 
tise in  the  columns  of  newspapers  or  other  mediums,  for  such  situations  as  he 
has  applicants  to  fill,  and  he  may  advertise  in  a  general  way  for  the  co-operation 
of  large  contractors  and  employers  in  such  trade  journals  or  special  publications 
as  reach  such  employers,  whether  such  trade  or  special  journals  are  published 
within  the  State  of  Illinois  or  outside  of  the  State.  The  like  duties  may  be 
performed  by  the  manager  of  each  branch  office  subject  to  the  direction  of  the 
general  superintendent.  The  services  of  said  exchange  in  securing  employ- 
ment shall  not  be  withheld  by  reason  of  any  strike  or  lockout,  but  full  informa- 
tion shall  be  given  to  applicants  regarding  the  existence  of  any  such  labor 
disturbance. 

Sec.  9.  It  shall  be  the  duty  of  the  general  superintendent  to  make  report 
to  the  Board  of  Managers  not  later  than  December  10th,  in  each  year,  concern- 
ing the  work  of  the  exchange  for  the  year  up  to  October  1st  of  the  same  year. 
Such  report  shall  be  transmitted  by  said  Board  of  Managers  to  the  Governor, 
who  shall  submit  it  to  the  General  Assembly. 

Sec.  10.  No  fee  or  compensation  shall  be  charged  or  received  directly 
or  indirectly  from  persons  applying  for  employment  or  help  through  such 
employment  exchange,  and  any  manager  or  clerk  or  other  employe  of  any  of 
said  officers  or  exchanges  who  shall  accept  directly  or  indirectly  any  fee  or 
compensation  from  any  applicant  or  from  his  or  her  representative  shall  be 
deemed  guilty  of  a  misdemeanor,  and  upon  conviction  shall  be  fined  not  less 
than  $25.00  nor  more  than  $50.00,  or  imprisoned  in  the  county  jail  for  not 
more  than  thirty  days,  or  both  fined  and  imprisoned  as  aforesaid. 

Sec.  11.  All  printing,  blank  books,  stationery,  and  other  supplies  that 
may  be  necessary  for  the  proper  conduct  of  the  business  of  the  offices  herein 
created  or  authorized  to  be  created  shall  be  furnished  by  the  Secretary  of 
State,  upon  request  for  the  same  signed  by  the  general  superintendent. 

Sec.  12.  An  Act  relating  to  employment  offices  and  agencies,  approved 
and  in  force  May  11,  1903,  as  subsequently  amended,  is  hereby  repealed. 


